Latest news with #Pinchy's
Daily Mail
06-07-2025
- Business
- Daily Mail
Restaurant boss takes extraordinary dig at his own STAFF as he announces shock closure of popular establishments
The owner of two popular restaurants that have been forced to close has delivered a stunning parting message, blaming staff with poor work ethic for the decision. Melbourne venue Pearl Chablis and Oyster Bar will hold its final service on July 19 after a three-year stint in the CBD. Its sister venue, Pinchy's, which gained a cult following for its lobster rolls and champagne, is also set to close the same weekend. Owner Jeremy Schinck told The Herald Sun many things influenced his call to close the venues including growing debt, low city patronage and the cost-of-living crisis. He claimed finding quality hospitality staff was challenging post-Covid, with restaurants forced to hire from a mediocre and shrinking talent pool of chefs and front-of-house staff. 'Work ethic after Covid has deteriorated,' he said. 'When you have inconsistencies and restaurants opening and closing, new staff aren't determined to do well in this job. 'They think, "oh this restaurant's going to close anyway" or "I don't give a damn because I'm studying".' Pearl Chablis and Oyster Bar gained a reputation for serving the freshest Australian oysters alongside French-inspired dishes Like most in the hospitality industry, Mr Schinck has found it hard to 'bounce back' after the pandemic. 'We're not getting the Monday-to-Friday crowds in the office,' he said. 'At Pinchy's, we have been hanging in there for last two years and have had to work twice as hard to earn half as much.' 'We're never going to trade out of the debt we are in. 'The margins are that small and we're not making up for the winter losses in summer. I'm just so deflated by it all.' Mr Schinck said wage costs weren't the problem, but rather the high turnover of staff. 'They are paid entry-level corporate salaries but some are behaving like teenagers,' he said. 'They aren't coming on board and thinking let's stay here for five to ten years. 'They are chopping and changing and this reflects in the business and over time that ruins the restaurant's reputation.' Others in the hospitality industry shared his point of view that poor work ethic from the next generation of hospitality workers was an issue. One recent retiree from the industry said his employer had resorted to hiring older front of office staff because they were more reliable and had better customer service skills. 'There had been a number of under 30s who did not cut the mustard,' he said. 'It was not unusual to have one regularly ring up sick on a Monday, or the day after a public holiday.' He added staff often arrived late and took 20-minute toilet breaks. Another event industry worker said he was exiting the industry claiming new staff were too focused on themselves and took too many personal and sick days. 'They turn up late then walk up the road to a cafe as 'I need my soy milk latte before I can face the day',' he said. 'Not turn up for two hours as 'I needed a haircut and I am flat out on the weekend and can't fit it in'. 'I'm doing it on my own for another year then I'm out of it.' Mr Schinck has called for the industry to adopt a tertiary qualification requirement, similar to European countries, so new workers would take the profession seriously. Pinchy's co-founder Samara Schinck described the closure of the venue on Bourke Street as 'deeply emotional'. 'We poured our hearts into creating a space that celebrated great food, genuine hospitality and moments of joy,' she told Concrete Playground. 'Unfortunately, the reality is that we can no longer make the restaurant work sustainably in today's economic climate and at this location.'
Herald Sun
01-07-2025
- Business
- Herald Sun
Allan government scraps small business support as Pure South, Pinchy's close
Victorian small business owners fighting for survival have been stripped of a key counselling service after it was axed by the cash-strapped Allan government. It comes as new data shows insolvencies and late payments are continuing to rise, with growing pressures forcing some restaurant and retail businesses to close their doors for good. Despite the huge strain, a specialist program which previously helped 5000 small business owners manage debt, finances and draw up business plans has been scrapped. Under pressure to wrangle debt, the state government failed to extend the Partners in Wellbeing small business program in May's budget. Small business owners have lashed the state government for failing to back them, warning Melbourne's 'crook' business conditions could result in an exodus of much-loved restaurants. Among them was heartbroken owner of well-known lobster and champagne restaurant Pinchy's, which will shut its doors this month. Jeremy Schinck said rising rent, energy bills, wages and penalty rates and unpredictable disruptions like protests had meant the once booming Bourke St restaurant was 'no longer sustainable'. 'We've tried everything — from reinventing our menus to adjusting how we trade — but the current climate just isn't viable,' he said. 'The margins in hospitality are already razor-thin, and any disruption can be devastating.' He told the Herald Sun small business owners like himself had been abandoned by the state government. 'Small businesses are the heartbeat of the hospitality industry, yet support continues to be withdrawn,' he said. 'I understand the economics of running a business — but right now, it simply doesn't add up.' Southbank institution Pure South Dining has also been forced to close their doors after 21 years on the Yarra. Owner Philip Kennedy pointed to ongoing tenancy issues and 'generally crook' business conditions in Melbourne. 'Economic conditions are not great, Victoria is worse and Southgate worse again,' he said. 'The landlord is not aspirational for the precinct at all.' It comes as new data from credit reporting agency Equifax shows there were 348 insolvencies reported in Victoria in April – up from 266 in the same month last year. Among them was beloved Lonsdale St eatery, Tsindos Greek Restaurant, which entered voluntary liquidation. The figures also show an increase in late payments among small and medium businesses, suggesting that pressures are taking their toll, as well as reduced credit demand. Executive general manager Moses Samaha said the data showed that Victorian consumers were saving rather than spending, despite interest rate cuts. 'This could delay any rebound in the small business sector,' he said. Legalise Cannabis MP Rachel Payne said it made 'no sense' for the government to axe the Partners in Wellbeing program in the current climate. 'To prevent more Victorian businesses going to the wall, the government must fund an ongoing dedicated small business financial counselling service, combined with a small business community legal centre, plus mental wellbeing supports,' she said. Not-for-profit retirement village operator Ross Turner turned to the program for help after floodwater inundated the accommodation in 2022. After battling his insurance company over the huge bill, he was connected to a financial counsellor who provided pro bono legal advice on the insurance claim and on updating the retirement village's policies, procedures, and contracts. 'I'd exhausted all other options and we couldn't afford legal fees as a self-funded not-for-profit,' he said. 'Without a small business financial counsellor, I would have gone over the edge.' Financial Counselling Victoria CEO Zyl Hovenga-Wauchope said the program's axing meant the 600,000 small businesses in Victoria had been left without access to dedicated face-to-face support. 'Financial counsellors can help to mitigate the risk of business failures, reduce the burden on the legal system, and support the sustainability of local economies – the social return on investment stacks up,' he said. A government spokesman said the small business support service was prompted by the pandemic and continued through the floods, but that it was no longer needed. 'The Partners in Wellbeing continues to offer phone-based wellbeing support and help Victorians navigate the mental health system, acting as the primary entry point to the Mental Health and Wellbeing Locals and Mental Health and Wellbeing Hubs,' he said. Andrew Roberts to pay staff, creditors after $20m bailout plan
